Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services
Indicate whether the statement is true or false
TRUE
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A subprime mortgage is: a. a mortgage in which the borrower gets an interest rate below the prime rate. b. a mortgage in which the interest rate is adjustable
c. a mortgage for which the home is valued below its true market value. d. a mortgage in which the borrower has a poor credit rating. e. a mortgage for a home that was in foreclosure.
An increase in production costs is most likely to shift the:
A. aggregate demand curve to the right. B. aggregate demand curve to the left. C. short-run aggregate supply curve up (to the left). D. short-run aggregate supply curve down (to the right).
The first structured investment vehicle (SIV) was set up by ________ in 1988
A) J.P. Morgan B) Chase C) Citigroup D) Goldman Sachs
Which of the following represents the opportunity cost of holding money?
A. the interest rate B. liquidity C. the rate of inflation D. none of these